HomeMy WebLinkAboutOrdinance 11-1983 i
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ORDINANCE NO. 11-83
ORDINANCE AWARDING SALE, PRESCRIBING THE FORM AND
DETAILS, AND PROVIDING FOR THE PAYMENT OF
$1 ,575 ,000 GENERAL OBLIGATION HOSPITAL AND NURSING
HOME REFUNDING BONDS OF 1983, AND DECLARING AN EMERGENCY
BE IT ORDAINED BY THE CITY OF BROOKINGS, SOUTH DAKOTA -
AS FOLLOWS:
Section 1. Authorization and Sale.
1. 01. It has been proposed that the City issue and
sell $1, 575,000 General Obligation Hospital and Nursing Home
Refunding Bonds of 1983, to be aated May 1, 1983, hereinafter
called the "Bonds" , the proceeds to be used, together with any
additional funds of the City which might be required, to refund
in advance of maturity the outstanding principal amount of the
following bond issues of the City (all such Bonds being
hereinafter collectively called the "Refunded Bonds" ) :
Title of Issue Date of Issue Outstanding Principal
General Obligation
Hospital Bonds of 1979 August 1, 1979 $1,290,000
General Obligation
Nursing Home Bonds
of 1980 $645, 000
1 .02. An offer to purchase the Bonds has been
received from Dain Bosworth, Incorporated of Omaha, Nebraska,
to purchase the Bonds at a price of par plus accrued interest,
and upon the further terms and conditions set forth in this
ordinance. It is hereby found that by acceptance of said bid,
and the refunding of the Refunded Bonds in accordance with the
procedures set forth in South Dakota Codified Laws, Chapter
6-8A, the City will achieve a substantial debt service savings,
to wit the debt service on the Bonds, computed to their
maturity and after adding any amounts to be paid from funds of
the City other than the proceeds of the Bonds, will be lower by �
$ 307,065. 00 than the debt service on the Refunded Bonds
computed to their maturity.
1. 03. The offer of Dain Bosworth, Incorporated is
hereby accepted. The Mayor and Finance Officer are authorized
to execute a contract on the part of the City for the sale of
the Bonds in accordance with Section 1.02 hereof.
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Section 2. Bond Terms, Execution and Delivery.
2.01 . The Bonds shall be designated General
Obligation Hospital and Nursing Home Refunding Bonds of 1983,
shall be dated May 1, 1983, shall be issued in the denomination
of $5,000 each, numbered serially from 1 to 315, inclusive, -
shall mature serially on August 1 in the years and amounts � -
stated below, and shall bear basic interest from date of issue
until paid or duly called for redemption at the annual rates
set forth opposite such years and amounts, as follows:
Year Amount Rate Year Amount Rate
1984 $85,000 6.25$ 1990 $130,000 7.80$
1985 95 ,000 6 .50$ 1991 145,000 8.10�
1986 100,000 6 .75� 1992 160, 000 8.40$
1987 105 ,000 7.00$ 1993 175,000 8 .70$
1988 115 ,000 7. 25$ 1994 195, 000 8. 90$
1989 125,000 7 .50$ 1995 145,000 9 .125$
The Bonds shall also bear additional interest from June 1, 1983
to February 1, 1984 at the rate of 5 .625$, to be represented by
an additional set of interest coupons.
2.02. The Bonds maturing in the years 1984 through '
1987 shall not be subject to reaemption before maturity. The
Bonds maturing in the years 1988 through 1995 shall each be
subject to redemption and prepayment at the option of the City
on February 1, 1988 and any interest payment date thereafter,
in inverse numerical order, at a price of par and accrued
interest. Not less than thirty or more than sixty days prior to
the date specified for redemption, notice thereof, containing
the information required by South Dakota Codified Laws , Section
9-25-9, will be mailed to the bank at which the Bonds are then
payable and to the holder thereof, if his name and address be
known to the Finance 0fficer, and will be published once a week
for two weeks in a newspaper published and of general
circulation in the County in which the Bonds are payable. The
Finance Officer is hereby authorized and directed to maintain a
register of the names and addresses of the holders of
prepayable Bonds who desire to register the serial numbers of
their Bonds with him for the purpose of receiving mailed notice.
2.03 . The basic interest on the Bonds shall be
payable semiannually on February 1 and August 1 of each year,
commencing on August 1, 1983 . Additional interest shall be
payable on February 1, 1984. The principal and interest on the
Bonds shall be payable at The First National Bank, in
Brookings, South Dakota, which is hereby desiginated as the
paying agent.
2.04. The Bonds, appurtenant interest coupons and -
certification of legal opinion shall be in substantially the
following form:
UNITED STATES OF AMERICA
STATE OF SOUTH DAKOTA
COUNTY OF BROOKINGS
CITY OF BROOKINGS
GENERAL OBLIGATION HOSPITAL AND NURSING HOME REFUNDING BOND
OF 1983 -
No. $5,000
KNOW ALL MEN BY THESE PRESENTS that the City of
Brookings, a duly organized municipal corporation of
Brookings County, South Dakota, acknowledges itself to be
indebted and for value received promises to pay to bearer upon
presentation and surrender of this bond the sum of FIVE
THOUSAND DOLLARS on the lst day of August, 19 , or, if this
bond is redeemable as provided below, then on a date prior
thereto on which it has been duly called for redemption, and to
pay interest on said principal sum from the date hereof until
said principal sum is paid, or , if this bond is redeemable,
until it has been duly called for redemption, at the basic rate
of and percent ( � ) per annum, and
from June 1, 1983 until February 1, 1984, at the additional
rate of five and six hundred twenty five thousandths percent
(5. 625� ) per annum. Interest hereon is payable semiannually on �
February 1 and August 1 of each year , commencing August 1,
1983, in accordance with and upon presentation and surrender of
the interest coupons appurtenant hereto, provided that the
additional interest at the rate specified above shall be payable
in accordance with and upon presentation and surrender of the
separate "B" coupon attached hereto on February 1, 1984 . Both
principal of and interest on this bond are payable at The First
National Bank, in Brookings, South Dakota, in any coin or
currency of the United States which on their respective dates
of payment is legal tender for public and private debts. For
the prompt and full payment of such principal and interest as
the same respectively become due, the full faith and credit and
taxing powers of the City have been and are hereby irrevocably
pledged.
This bond is one of an issue in the total principal
amount of $1 ,575 ,000, all of like date and tenor except as to
serial number , maturity date, interest rate and redemption
privilege, issued for the purpose of refunding certain
outstanding general obligation bonds of the City, pursuant to
and in full conformity with the provisions of the Constitution
and laws of the State of South Dakota thereunto enabling,
including South Dakota Codified Laws, Chapter 6-8A, and
Ordinance No.11-83of the City.
Bonds of this issue maturing in the years 1984 thro�gh - -
1987 are payable on their respective stated maturity dates - --
without option of prepayment, but bonds having stated maturity
dates in the years 1988 through 1995 are each subject to
redemption and prepayment at the option of the City, in inverse
numerical order , on February 1, 1988 and any interest payment
date thereafter at a price of par plus accrued interest. At
least thirty ana not more than sixty days prior to the date
specified for prepayment of any bond, notice of the call
thereof will be published once each week for at least two
consecutive weeks in a newspaper published and of general
circulation in the county in which the bonds are payable, and
will be mailed to the bank at which principal and interest are
then payable and to the holder thereof, if known. Holders of
prepayable bonds who desire to receive such notice may register
their names and addresses and the serial numbers of their bonds
with the Municipal Finance Officer in Brookings, South Dakota.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED '
that all acts, conditions and things required by the
Constitution and laws of the State of South Dakota to be done,
to exist, to happen and to be performed precedent to and in the
issuance of this bond, in order to make it a valid and binding
general obligation of the City in accordance with its terms,
have been done, do exist, have happened and have been performed
in regular and due form, time and manner as so required; that
the City has appropriated the proceeds of the bonds of this
issue, together with such other legally available funds of the
City as may be required, and has invested such moneys in
securities of the United States, in such amounts, maturing on
such dates, and bearing interest at such rates as are required
to pay all principal and interest on the refunded bonds to
their maturity, and has irrevocably placed such funds and
securities in escrow for this purpose; that the bonds are
payable from a separate and special debt service fund of the
City and from ad valorem taxes levied and appropriated to such
fund; that, if necessary for payment of principal of and
interest on the bonds of this issue, additional ad valorem
taxes may be levied upon all taxable property in the City
without limitation as to rate or amount; and that the issuance
of this bond does not cause the indebtedness of the City to
exceed any constitutional or statutory limitation.
IN WITNESS WHEREOF the City of Brookings, Brookings -
County, South Dakota, by its City Commission, has caused this -
bond and the interest coupons appurtenant hereto and the
certificate on the reverse hereof to be executed by the
facsimile signatures of the Mayor and Finance Officer, has
caused this bond to be executed by the manual signature of one
of said officers and countersigned by an attorney residing in
and licensed to practice in the State of South Dakota, has
caused a facsimile of the official seal to be printed hereon,
and has caused this bond to be dated May 1, 1983.
Attest:
(facsimile) (Seal) (facsimile)
Finance Officer Mayor
Attorney
(Form of Coupon)
No. �
Unless the bond described below is subject to and has
been duly called for earlier redemption, on the lst day of
August (February) , 19_, the City of Brookings, Brookings
County, South Dakota, will pay to bearer at The First National
Bank in Brookings, South Dakota, the amount shown hereon in
lawful money of the United States, for the interest then due on
its General Obligation Hospital and Nursing Home Refunding Bond
of 1983, dated as of May 1, 1983, No.
(Facsimile signature) (Facsimile signature)
Finance Officer Mayor
(Form of legal opinion certificate)
We certify that the above is a full, true and correct
copy of the legal opinion rendered by bond counsel on the issue -
of bonds of the City of Brookings, South Dakota, which includes -
the within bond, dated as of the date of delivery of and
payment for the bonds.
(Facsimile signature) (Facsimile signature)
Finance Officer Mayor
2.05. The bonds shall be prepared under the direction
of the Finance Officer and shall be executed on behalf of the
City by the facsimile signatures of the Mayor and Finance
Officer , and the manual signature of one of said officers and
an attorney residing in and duly licensed to practice in the
State of South Dakota. A facsimile of the seal of the City
shall be printed on the Bonds. The interest coupons and the
legal opinion certificate on the reverse of each Bond shall be
executed and authenticated by the printed facsimile signatures
of the Mayor and Finance Officer. When the Bonds have been so "
executed and authenticated, they shall be delivered by the
Finance Officer to the purchaser upon payment of the purchase
price, and said purchaser shall not be obligated to see to the
application of the purchase price.
Section 3. Use of Bond Proceeds.
3 . 01. The proceeds of the Bonds, other than premium
and accrued interest, if any, and other than amounts set aside
to pay expenses, are irrevocably appropriated, together with
such additional sum as may be required from funds now on hand
in the sinking funds established for the Refunded Bonds, for
the payment of the Refunded Bonds at their respective
maturities, and for the payment of interest to become due on
the Refunded Bonds on or before the respective dates on which
they are to be paid. The Finance Officer is hereby authorized
and directed, simultaneously with the delivery of the Bonds, to
deposit the proceeds thereof, to the extent described above,
and any additional sum which may be required, in escrow with
The First National Bank in Brookings, South Dakota, and shall
invest the funds so deposited in securities authorized by law
for such purpose, maturing on such dates and bearing interest
at such rates as are required to provide funds sutficient, with
any cash retained in the escrow account, to pay when due the
interest to accrue on the Refunded Bonds to their respective
maturity dates, and to pay the principal amount of each of the -
Refunded Bonds at maturity. The Mayor and Finance Officer are -
hereby authorized to enter into an agreement with the escrow
bank establishing the terms and conditions of the escrow
account.
Section 4. Sinking Fund and Tax Levies.
4 . 01. The Refunded Bonds are payable from separate
debt service funds heretofore established on the books of the
City. Upon delivery of the Bonds, the Refunded Bonds,
including interest thereon, will be payable from the escrow
account established pursuant to Section 3 . Therefore, so long
as the escrow account is maintained and payments are made as
provided in the escrow agreement, the taxes heretofore levied
for payment of the Refunded Bonds will not be required for such
purpose and this Board shall request the County Auditor to
cancel said levies as provided by law. Any amounts presently
on hand in said sinking funds, and not needed to fund the �
escrow account established pursuant to Section 3, shall be
transferred to the sinking fund established for the Bonds.
4.02. In order to provide money for the prompt and
full payment of principal of and interest on the Bonds, as such
principal and interest become due, there shall be and is hereby
levied upon all taxable property in the City a direct annual
irrepealable ad valorem tax in the years and amounts as follows:
Levy Year Amount Levy Year Amount
1983 206,780 1990 210,124
1984 211,036 1991 212,531
1985 209,574 1992 213r199
1986 207,524 1993 216t909
1987 209 ,680 1994 151,616
1988 210, 824
1989 206 ,066
s
The proceeds of said levy when and as collected shall be placed
in a separate sinking fund hereby created to be known as
"Sinking Fund of $1, 575,000 General Obligation Hospital and
Nursing Home Refunding Bonds of 1983" , and shall be used for no
other purpose than to pay the principal of and interest on the
Bonds as such becomes due; provided that if any payment of -
principal or interest shall fall due on said Bonds when moneys - --
in said sinking fund are insufficient therefor , such payments
shall be made from the general fund of the City, and said
general fund shall be reimbursed for the amounts so advanced
out the proceeds of the foregoing taxes when collected.
4 .03 . The foregoing levies shall be irrepealable so
long as any of the Bonds, or interest thereon, shall remain
unpaid, except that to the extent permitted by law if
appropriations shall hereafter be made into said sinking fund
of cash from any other fund of the City and moneys therefor
actually paid into the sinking fund, the Board shall have the
power to reduce the levy for the ensuing year or years
specified in Section 4. 02 hereof by an amount equal to the
amount so appropriated; and upon certification thereof to the
County Auditor, the levies above specified shall be accordingly
reduced or cancelled.
4. 04. In order to ensure compliance with Section
103 (c) of the Internal Revenue Code, and applicable
regulations, the Finance Officer, following payment of
principal and interest on the Bonds on each August l, shall
ascertain the balance then on hand in the sinking fund
established for payment of the Bonds. To the extent the
balance exceeds 1/12th of the debt service on the Bonds for the
next bond year (August 1 to August 1 ) , said excess shall
(unless an opinion is otherwise received from bond counsel) be
used to prepay or purchase Bonds, or invested at a yield which
does not exceed the yield on the Bonds (9.34$ ) .
Section 5 . Certification of Proceedings.
5. 01 . The officers of the City and the County Auditor
are authorized and directed to prepare and furnish to the
purchasers of the Bonds, and to bond counsel, certified copies
of all proceedings and recoras of the City relating to the
authorization and issuance of the Bonds, and such other
affidavits and certificates as may reasonahly be required
. , r� ..v .. , . ,
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STATE OF SOUTH DAKO'rA
COUNTY OF BROOKINGS
I , the undersigned, being the duly qualified and - --
acting Finance Officer of the City of Brookings, South Dakota,
hereby certify that I have carefully compared the attached and
foregoing copy of Ordinance No.11-83 of the City with the
original thereof on file and of record in my office and the
same is a true and exact copy thereof.
WITNESS my hand officially as such Finance Officer and
the seal of the City this 19th day of April, 1983.
nanc Of cer
(Seal )
to show the facts relating to the legality and marketability of
the Bonds as such facts appear from the officer 's books an6
records or are otherwise known to them. All such certificates,
copies and affidavits, including any heretofore furnished,
constitute representations of the City as to the correctness of
the facts recited therein and the actions stated therein to _
have been taken. - --
5.02. This ordinance is necessary for the immediate
preservation of the public peace, health and safety and for the
support of the municipal government and its existing public
institutions, and an emergency exists and this ordinance shall
be in full force and effect immediately upon its final passage,
approval and publication.
Approve • -
ayor
Attest:
Finance Officer
Passed first reading: April 12 ,1983 '
Passed second reading: April 19 ,1983
Aaopted: April 19 , 1983
Approved: April 19 ,1983
Published: Apri1 27 , 1983